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Credit card rewards are often used by credit card issuers to attract customers to their credit cards. These rewards are getting better by the day because o the intense competition that exists between many credit card issuers to get a major chunk of the pie. Here are some of the best credit card rewards which in some cases can translate to direct savings.
Cash back offers
Customers with excellent credit are often offered credit cards by various lenders like Chase and Capital One etc. with a cash back offer that varies between 1-5% on all purchases at gas stations, groceries, drug stores and super markets. The cash back sometimes is genuinely good, given that there are no caps applied and the cash is directly available to the customer as a check or as a rebate in the next month's credit card bill. Effectively this credit card cash back offer means a discount of up to 5% on everything that the customer spends or purchases which could make for quite a handful of savings by the end of the year.
For those credit cardholders who travel very often and stay at hotels, for personal vacations or for business, the airline miles available on credit cards, could convert into direct savings. The customers can get handy discounts on the ticket costs.
Loyalty points are accumulated month after month depending on the credit card expenses of the customer. There are many schemes offered by credit card issuers, wherein the number of loyalty points added per every dollar spent varies between 1-5 points. These loyalty points can later be redeemed for discounts on purchases made. If you are planning to purchase clothes or some other items at select merchants at the end of the year, you could instead redeem your loyalty points on the credit card, thus saving a substantial amount of money.
A lot of working professionals like to take a break and go for movies, concerts or operas during the weekend. Credit cards often offer rewards like discounts on the concert tickets or movie tickets. Some tickets have attractive reward schemes like one ticket free of cost on every ticket purchased for movies and concerts. Assuming that this offer is valid once every month, you can still end up saving a few hundred dollars by the end of the year. More importantly, it will help you catch your favorite movies at less cost and also motivate you to not throw away too much money, usually restricting you to that one outing every month.
Discounts at hotels and restaurants
Many credit card companies like American Express and even networks like MasterCard have tie-ups with restaurant and hotel chains like Hilton and Marriott. The benefit is that whenever you are on vacation, you get special discounts for your hotel stays. You can also enjoy discounts on your lunch or dinner at a few of these restaurants during a weekend outing with your partner or friends.